Remittances on track of a new record

Mexicans working abroad, mainly in the United States, sent home a record total of remittances during October, Banxico has reported. Some US$3.125 billion were sent to Mexico, the largest amount for October since registers began and the fifth consecutive month above US$3 billion.

Banxico figures show the average remittance amount sent during October was US$322. During 2019, Mexican workers sent a total of US$30.067 billion, 8.5 percent higher than the same period in 2018.

According to Alberto Ramos, Goldman Sachs’ economist for Latin America, this monetary flow continues to support private consumption of low-income families.

The peso depreciation is a factor that usually affects the flow of remittances. By converting the dollars sent into pesos, the 1.8 million Mexican households that received remittances would saw its value increase by 9.5 percent.

No official data has yet been collected on the remittances sent via cryptocurrencies. Banxico governor Alejandro Díaz de León said workers prefer more traditional channels and those willing to use digital means are only a small group.

A growing fear among Mexican migrants of being arrested or deported is one reason remittances have risen, said Juan Carlos Alderete, a senior economist at Banorte Ixe. “This situation is likely to continue in the 2020 presidential election of the United States”.